4).Sales is $100 per unit; direct material is $25 per unit; direct labor is $15 per unit, overhead is $10 per unit and $20,000 per month; selling and administrative expenses are $5 per unit and $10,000 per month. The company produced 900 units. Gross margin equals:

a).$25,000 b).$40,500 c).$90,000 d).$10,500

5).Sales is $100 per unit; direct material is $25 per unit; direct labor is $15 per unit, overhead is $10 per unit and $20,000 per month; selling and administrative expenses are $5 per unit and $10,000 per month. The company produced 900 units. Net income equals:

a).$10,500 b).$40,500 c).$90,000 d).$25,000

6).Sales is $120 per unit; direct material is $21 per unit; direct labor is $9 per unit, overhead is $6 per unit and $9,000 per month; selling and administrative expenses are $12 per unit and $18,000 per month. The company produced 1,000 units. Total period costs are:

a).$30,000 b).$18,000 c).$45,000 d).$36,000